Loan against property

A loan against property can be taken as a business loan to grow your business, or to fund your children’s education, or meet a wedding’s expenses. The proceeds of a loan against property can be used for any legitimate purpose. At Square Capital, we research the entire options of mortgages for you and handpick the one that best suits your objectives.

From the day an application is being given, banks usually take about 4 – 5 working days to disburse the loan. This is subject to complete information & documentation given at the time of the application.

A Loan Against Property (LAP) has many advantages over a Top-up Loan. They include:

• A Higher Loan Amount: Typically, an LAP may offer a higher loan amount than a Top-up Loan.
• Avail of Different Property: While an LAP can be availed of against a different residential or commercial property than the one for which the loan was originally taken, a Top-up Loan may only be taken against the property already in question. This flexibility allows you to both avail of a higher loan amount and spread your liability.
• Longer tenure: An LAP can be availed for a long term than a Top-up Loan.

If someone is the co-owner of the property in question, it is necessary that he/she also be the co-applicant on the loan.
You may also consider adding your spouse or parents or children as co-applicants to boost the eligibility on your loan.

The EMI consists of the principal amount and the interest on the principal amount. It is calculated by taking into account the loan amount, the time frame for repaying the loan and the interest rate on the borrowed sum. The EMI may be subject to change when interest rate changes or a part-payment of the Loan is made.
Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.

You may place request for Statement of Account or Repayment Schedule or Interest Certificate in either of the following ways:

• By calling the bank’s Call Center at any of their toll free numbers:
• By using your registered email id the to write to the loans department of the respective bank
• Walk-in person to the branch to get the physical statements

Yes, generally banks allow you to part-pay on the loan. This can be done at one of their nearest branch locations. Once the part-payments are done, you either have the option to reschedule the EMI for the new outstanding or keep the same EMI so that the overall tenure of the loan would come down and the loan gets repaid faster.

• Standing Instruction (SI): This mode can be used if you have an existing savings, salary, or current account with the lender. You may wish to open a savings account with the lender to use this option. Your EMI amount will be debited automatically at the end of the monthly cycle from the account you specify.
• Electronic Clearing Service (ECS): This mode can be used if you have a different Bank account other than the lender’s and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
• Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a different Bank account for a specific period of time. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques are usually collected for non-ECS locations only.
We recommend that you opt for either the SI or ECS mode of payment as they are both faster and less prone to error than the use of PDCs.

Yes, generally banks allow you to part-pay on the loan. This can be done at one of their nearest branch locations. Once the part-payments are done, you either have the option to reschedule the EMI for the new outstanding or keep the same EMI so that the overall tenure of the loan would come down and the loan gets repaid faster.

Before foreclosure is processed, all outstanding dues must be cleared. So first check for and clear any remaining amount that may be payable towards your Personal Loan by requesting a foreclosure statement from your lender.
Once all outstanding dues have been cleared, submit a foreclosure request at the Loan Center, for processing.
Most of the banks/lenders levy no charge for pre-closure of a Personal Loan account.